Blockchain-based platform for letters of credit goes live
Eight banks have gone live with the Voltron initiative, an open platform for documentary trade.
Voltron provides a single point of contact to connect corporates with their banks and trading partners, on a distributed ledger, for issuing letters of credit (LCs) and exchanging documents, to make transacting with LCs more efficient.
Where LCs require a complex global paper-chase, distributed ledger technology (DLT) involves a single, transparent, end-to-end trade, executed quickly and seamlessly between buyer, seller and their respective banking partners, say Voltron’s backers.
Being conducted on a single, shared application, rather than multiple systems, it delivers a substantial reduction in the time it takes to execute the trade, from up to 10 days, down to 24 hours.
Voltron has been backed by Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB and Standard Chartered.
Banks are very eager to use this technology - Vivian Chan, CryptoBLK
It has been developed and operated by CryptoBLK, a Hong Kong-based technology company, and is hosted on the cloud and based on R3’s Corda platform, making it easy to update and upgrade in response to user feedback.
Voltron’s viability was proved by a pilot transaction with Cargill in May.